The Performance of Undiversified Portfolio in Indonesia Stock Exchange

Frensidy, Budi


This research is aimed to analyze the diversification practice among domestic retail investors at the Indonesia Stock Exchange (IDX) and its portfolio performance. An individual domestic investor at IDX holds 4.3 stocks on average with the median two stocks. This is in line with the findings of Goetzmann & Kumar (2008), Kelly (1995), and Polkovnichenko (2005). For the performance, without considering risk, minimum and moderate diversification portfolios tend to be better than the extensive diversification. However, when risk is taken into account, the undiversified portfolios do not outperform the extensive diversification.


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3rd International Multidiciplinary Conference on Social Sciences 2015

  • Conference held in Bandar Lampung, Indonesia in 2015
  • 32 articles

Bandar Lampung University (UBL) Indonesia held the 3rd International Multidisciplinary Conference... see more